The
basic earnings (loss) per share are calculated by dividing
the profit for the financial year attributable to shareholders
by the weighted average number of shares in issue after
deducting the company’s shares held by employee
share ownership trusts.

In calculating the diluted earnings (loss) per share,
share options outstanding and other potential ordinary
shares have been taken into account.

The weighted average number of shares in the years were:

2001

2000

1999

millions

millions

millions

of shares

of shares

of shares

Basic

6,525

6,488

6,442

Dilutive ordinary shares from
share options outstanding and shares held in trust

96

154

150

Total diluted

6,621

6,642

6,592

Options
over 39 million shares were excluded from the calculation
of the total diluted number of shares in the year ended
31 March 2001 because to do so would have been antidilutive.

The items in the calculation of earnings (loss) per share
before goodwill amortisation and exceptional items in
the years were:

2001

2000

1999

pence

pence

pence

2001

2000

1999

per share

per share

per share

£m

£m

£m

Profit on sale of
group undertakings

9.4

1.9

–

619

126

–

Rates refunds relating
to prior years

3.0

–

–

193

–

–

Goodwill impairment

(49.0

)

–

–

(3,200

)

–

–

Write off of subscriber
acquisition costs

(2.1

)

–

–

(139

)

–

–

Viag Interkom write
off of IT Systems

(0.7

)

–

–

(43

)

–

–

Interest receivable
on rates refunds, relating to prior years

0.4

–

–

25

–

–

Costs relating to
the closure of the BT Cellnet analogue network

–

(0.7

)

–

–

(47

)

–

Profit on sale of
MCI shares

–

–

17.6

–

–

1,133

Provision against
another fixed asset investment

–

–

(0.4

)

–

–

(26

)

Costs relating to
the disengagement from MCI

–

(1.0

)

(1.1

)

–

(64

)

(69

)

Goodwill amortisation

(8.6

)

(2.6

)

(0.3

)

(558

)

(173

)

(17

)

Total credit (charge)
before tax and minority interest

(47.6

)

(2.4

)

15.8

(3,103

)

(158

)

1,021

Tax charge attributable

(0.3

)

(0.1

)

(4.5

)

(22

)

(5

)

(291

)

Minority Interest

(0.3

)

–

–

(21

)

–

–

Net credit (charge)

(48.2

)

(2.5

)

11.3

(3,146

)

(163

)

730

Basic earnings (loss)
per share/profit for the financial year after goodwill
amortisation and exceptional items

(27.7

)

31.7

46.3

(1,810

)

2,055

2,983

Goodwill amortisation
and exceptional charge (credit)

48.2

2.5

(11.3

)

3,146

163

(730

)

Basic earnings
per share/profit for the financial year before goodwill
amortisation and exceptional items